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Dateline: 26th February, 2008
Derby Legal Challenge An Arts Council proposal to put Derby Playhouse Ltd into liquidation was agreed at a creditors' meeting - but the theatre's board said it would challenge the move in court. The directors will dispute an Arts Council claim for a refund of £1.4m it gave the theatre eighteen months ago as part of a recovery package. Earlier this month the Arts Council decided not to fund Derby Playhouse Ltd for the next three years. However, it confirmed its commitment to produced theatre in Derby and awarded the city council £2.3m to be spent over the next three years. The Arts Council said that when the company ceased trading, its grant to the theatre became a loan and had to be repaid. The board disputes this and plans to challenge the ruling in the county court. The theatre claims it never ceased trading as it continued to stage performances in December, and it was ready to reopen at any time. It has fourteen days to mount the challenge. In the meantime the administrators Tenon will take no further action. Steve Orme
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